It is standard to model the output-inflation trade-off as a linear relationship with a time-invariant slope. We assess … coincided with stable, albeit moderately negative, inflation. We document that this episode is most convincingly interpreted as … Phillips curve slope. Our results suggest that, in any economy where trend inflation is substantially lower (or substantially …

I develop a new estimate of core inflation for New Zealand and Australia based on a dynamic factor model. By using an … innovation allows us to examine the relative contributions of tradable and nontradable prices towards core inflation. The results … show that core inflation in both countries is primarily driven by the nontradable factor. The nontradable factor also …

This paper uses wavelets to develop a core inflation measure for inflation targeting central banks. The analysis is … applied to the case of New Zealand – the country with the longest history of explicit inflation targeting. We compare the …-term trend in inflation. It also has comparable forecasting performance to standard benchmarks. …

New Zealand data show that the inflation-output relationship is asymmetric. This asymmetry implies that positive demand … shocks tend to increase inflation by more than negative demand shocks of similar magnitudes reduce it. An important … implication of this asymmetry is that a monetary authority with the objective of maintaining the inflation rate within a narrow …

This paper introduces a new indicator of core inflation for New Zealand, estimated using a dynamic factor model and … with a wide range of other ‘core inflation’ measures estimated from disaggregate prices, such as the weighted median and … inflation outcomes. The 2 year centred moving average is used as an analytical approximation of the inflation target from the …